Can I Set Up an Automatic Payment Plan with the IRS?

Yes — when setting up a long-term installment agreement, you can choose a Direct Debit Installment Agreement (DDIA), which automatically pulls your monthly payment from your bank account. This actually reduces your setup fee: $31 online ($107 if applying by phone or mail) versus $130 for non-direct-debit agreements. It also reduces the risk of missing a payment, which can cause your agreement to default. You set the monthly amount and payment date during setup. Once the agreement is established, you can modify the payment amount or date by contacting the IRS — though you cannot reduce it below the minimum required.